Fiscal 2014 Revenues Up 110% to Record $35.4 Million, Driving Record Net Income of $0.12 per Share - a 300% Annual Increase in Per-Share Earnings

June 30, 2014 16:56 ET | Source:Profire Energy

LINDON, Utah, June 30, 2014 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (Nasdaq:PFIE), a technology company which manufactures, installs and services burner management systems and other combustion technologies for the oil and gas industry, today reported financial results for its fiscal year ended March 31, 2014.

Fiscal Year Highlights

Increased revenues 110% to record $35.4 million

Increased earnings-per-share to record $0.12 (after-tax)

Opened additional offices throughout U.S., expanded sales and service teams

Extended brand with launch of first proprietary valve product

Partnered with Prior Industries Australia PTY LTD, raising number of company's international distributors to three

Recognized as #311 fastest-growing company in North America by Deloitte

Fiscal Year Financial Results

Total revenues in the fiscal 2014 increased 110% to a record $35.4 million from $16.9 million in fiscal 2013. The increase in revenues was primarily due to expanded US operations, including the increased hiring of sales and service personnel, an expanded product line, and continued technology- and production-expansion in the energy industry.

Gross profit increased to $20.0 million or 56.6% of total revenues in fiscal 2014, compared to $8.8 million or 52.2% of total revenues in fiscal 2013.

Total operating expenses increased to $11.4 million from $6.6 million in 2013. As a percentage of total revenues, operating expenses were 32% compared to 39% in 2013. Though lower as a percentage of revenue, operating expenses increased, primarily due to a marked increase in non-cash stock option expense, expansion and opening of offices throughout the U.S., hiring of additional personnel, and increased research and development expense to support the introduction of the company's next generation of burner management systems and other products.

After-tax net income was a record $5.6 million or $0.12 per share, compared to net income of $1.4 million or $0.03 per share in the previous year, an increase of 300% in per-share earnings.

Management Commentary

"Our record growth for the year was primarily driven by further expansion of our sales and service teams in the U.S., and bolstered by the strong growth in the oil and gas industry in North America," said Brenton Hatch, Chief Executive Officer of Profire. "As we grow our presence in the U.S., we anticipate the industry's familiarity with the concept of burner management technology to grow with it. Our recently opened sales office in Pennsylvania and service center in Texas will play a significant role in educating those regions about the role and benefits of enhanced burner management."

"The market continues to demonstrate that there is continued and significant need for enhanced burner management," Hatch continued. "And we look forward to another year of significant growth, expansion, and value-creation for our stakeholders."

About Profire Energy, Inc.

Profire Energy assists energy production companies in the safe and efficient production and transportation of oil and natural gas. As energy companies seek greater safety for their employees, compliance with more stringent regulatory standards, and enhanced margins with their energy production processes, Profire Energy's burner management systems are increasingly becoming part of their solution. Profire Energy has offices in Lindon, Utah; Houston, Texas; Victoria, Texas; Oklahoma City, Oklahoma; Tioga, Pennsylvania; and Edmonton, Alberta, Canada. To learn more about Profire Energy, please visit www.ProfireEnergy.com.

Cautionary Note Regarding Forward-Looking Statements

Statements made in this release that are not historical are forward-looking statements. This release contains forward-looking statements, including, but not limited to statements regarding the Company's expansion plans or their suitability to accommodate its expanding sales and service teams; the efficacy of the Company's distribution channels in distributing products domestically or internationally; the role the Company's offices may play in educating the industry; the increase in technology-use or overall production in the industry; the growth of the industry's familiarity with the concept of burner management, including as it relates to the Company's efforts; the market's need or demand for burner management products, and the Company's assessment of the same; and the realization of growth, expansion, and valuate creation for the Company's stakeholders. All such forward-looking statements are subject to uncertainty and changes in circumstances. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business, public market and regulatory risks and factors identified in the company's periodic reports filed with the Securities Exchange Commission. All forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances, except as required by law. Readers should not place undue reliance on these forward-looking statements.

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